Euro Outlook Turning More Bullish as Crowd Fades Advance
EURUSD - The ratio of long to short positions in the EURUSD stands at -1.75 as 36% of traders are long. Yesterday the ratio was -1.98; 34% of open positions were long. Long positions are 6.1% higher than yesterday and 9.6% below levels seen last week. Short positions are 6.4% lower than yesterday and 23.3% above levels seen last week. Open interest is 2.2% lower than yesterday and 7.8% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. The trading crowd has grown less net-short from yesterday but further short since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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--- Written by Christopher Vecchio, Currency Strategist
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